Lubbock Electricity Rates and Plans (December 2024)

Editor’s note: Plans and rates were accurate at the time of writing for ZIP code 79424. They may vary over time and for other ZIP codes.

Lubbock residents enjoy the benefits of Texas’s deregulated electricity market, including the power to choose their retail electricity provider (REP) and search for below-average electricity prices. The cheapest electricity plan in Lubbock is the Saver 36 plan from Discount Power, with a per-kWh rate of just 15.4 cents. The cheapest electricity plan in Lubbock that delivers 100% renewable energy is the Octo 12 with Smart Thermostat Connected plan from Octopus Energy, with a rate of 17.4 cents per kWh.

The table below includes the top 14 cheapest energy plans in Lubbock that use 100% renewable energy. Since our team at EcoWatch is committed to a healthier environment and helping people reduce their carbon footprint, we strongly recommend choosing a plan that exclusively uses clean energy.

*Rates will vary based on your TDU. 

How To Choose the Best Electricity Plan in Lubbock

When searching for the best electricity rates in Lubbock, keep in mind that rates and the average cost of electricity can vary based on numerous factors, so you may be given a different electric rate than that of your neighbors. Here are a few things to consider:

Types of Electricity Plans

When choosing an energy provider in Lubbock, you’ll be presented with a few plan options. Here’s an overview of the types of electric plans offered in Lubbock, as well as their pros and cons, so you can pick which plan works best for you.

Fixed-Rate vs Variable-Rate Plans

When you choose an electricity plan in Lubbock, you’ll have one of two overarching options: a fixed rate or a variable rate. A fixed-rate plan includes your set price per kWh in the contract you sign, meaning you’ll always know the rate you’ll pay for electricity.

Fixed-rate plans can have a static rate that applies at all times throughout your contract. They can also be time-of-use (TOU) plans, which still have predetermined rates, but they’re different for different times of day. In either case, though, you know what your electricity will cost for as long as your contract is active.

With a variable-rate plan, your rate will change based on the market price of electricity. If there’s a rate spike such as much of Texas saw during the unexpected winter storm in February 2021, your utility bills can skyrocket. Of course, the market price of electricity can also go down, which would actually lead to savings over a fixed-rate plan, but there’s always a risk with a variable rate.

In the recent past, a variable-rate plan in Lubbock would have saved you money. The average cost of energy via a variable-rate plan is 17.28 per kWh, which is below the average cost of 17.81 for fixed-rate plans in the area.

Green Energy Plans

Green energy plans provide 100% renewable energy to your home, which means you can effectively convert to clean energy without having to spend thousands on a rooftop solar array. You’ll still reduce your carbon footprint, but there’s no up-front cost and no added risk from roof penetrations necessary for installing solar.

The term “green energy plan” only refers to where your electricity comes from, so a green energy plan can also have a static rate or a TOU rate under the umbrella of fixed-rate energy plans, and it can also have a variable rate.

Green energy plans are tiered as follows in Lubbock:

• 0% to 25% renewable energy provided
• 26% to 50% renewable energy provided
• 51% to 75% renewable energy provided
• 76% to 99% renewable energy provided
• 100% renewable energy provided

In some cases, green energy plans have competitive rates that are below the average electricity cost in Lubbock, but in general, they tend to be a little more expensive.

Check out the short video below from Octopus Energy, an REP in Lubbock, about how clean energy works and why it’s beneficial:

Your Energy Usage

Your electricity consumption is crucial to consider when choosing an electricity plan in Lubbock. With any plan, your monthly bills will be higher as your consumption goes up because you’re charged per kWh you consume. However, there are some nuances to your electricity usage habits that can affect your pricing further.

First, all REPs in Lubbock have three usage tiers under which they charge customers. Homeowners that use an average of 2,000 kWh per month get the lowest rates in any given plan. Homeowners who use an average of 1,000 kWh per month — which includes most Lubbock residents, as the average consumption is 1,172 kWh per month — get average rates. Homeowners who use an average of just 500 kWh per month get the highest rates. Below is an example, which is pulled from the cheapest 100% renewable energy plan available in Lubbock:

• 500 kWh per month: 18.4 cents per kWh
• 1,000 kWh per month: 17.4 cents per kWh
• 2,000 kWh per month: 16.9 cents per kWh

The disparity between the tiers varies based on the REP, so if you have unusually high or low consumption, you should consider the cost per kWh based on the tier that applies to you.

Second, you should consider when you consume the bulk of your electricity and see if a TOU plan would benefit you. Many REPs in Lubbock offer TOU plans with low rates or even free energy during the overnight period. If you charge an EV overnight or can prioritize your electricity usage for the times when the rates are lowest, you’ll likely save money over choosing a standard plan.

Contract Length

Next, I recommend considering what contract length is going to work best for you. Most REPs have plans that are 12, 24 or 36 months long, with early cancellation fees if you back out before the contract ends. If you want flexibility in your electricity provider, the type of rate or the cost of electricity, a shorter contract is likely best. However, if you expect the electricity price to increase in the near future, a longer contract would let you lock in a lower rate for longer, potentially saving you money.

REPs in Lubbock also usually have different prices based on the contract length. Some REPs prioritize shorter contracts so that they don’t lock themselves into lower rates for long periods if they expect the cost of electricity to rise in the future. In that case, shorter contracts of around 12 months or fewer are likely to be the most affordable.

Other REPs prioritize maintaining the customer base they have and incentivize longer contracts to ensure they keep your business for longer. In that case, longer contracts for 24 or 36 months are likely to come with lower per-kWh rates.

I recommend choosing an REP and then looking at the different contract terms and rates it offers to see which suits you and your budget best.

Electricity Facts Label

When shopping for an energy provider, always look for an Electricity Facts Label (EFL). Similar to a nutrition label you see on packaged foods, an EFL will give you all of the information about a company’s electricity prices, contract lengths and terms, sources of generation, and emission levels. Here’s an example of what that’ll look like:

Watchouts

One of the most important things to pay attention to when choosing your electricity plan in Lubbock is the rate structure. Make sure you understand what your rate is and whether or not it can change. Think carefully about variable-rate plans, as you could face rate spikes during natural disasters or periods of high demand that cause your utility bills to skyrocket.

Additionally, some scams have been reported in the Lubbock area that you should be aware of. These usually involve people claiming to be representatives of your REP contacting you via phone or in person to collect payment or personal information, usually in exchange for lower rates, energy efficiency equipment or continued electric service. Never provide personal information — even your electric bill — to anyone without contacting your REP directly.

Understanding Deregulated Energy in Lubbock

Texas passed legislation in 1999 to deregulate its electricity market, and since then, Lubbock customers have been able to choose their REPs. REPs compete with each other for your business, and that competition tends to drive down prices and improve customer service.

One major upside of the deregulated electricity market is that REPs can incentivize customers with different perks, one of which is offering 100% renewable energy. Some REPs in Lubbock — such as Gexa Energy, Octopus Energy and Green Mountain Energy — specialize in clean energy and don’t offer electricity produced with fossil fuels at all. This is an outstanding way to allow customers to do their part to reduce carbon dioxide emissions, global warming and their carbon footprints, all without having to lay out money for a rooftop solar system.

While the overall impact on the market is generally positive, deregulated energy complicates things a bit. Rather than a single distribution company, you have three components: a power production company or power plant, a transmission and distribution utility (TDU) and retail electricity providers (REPs). The power production company produces energy, the TDU delivers it and the REP collects payment and creates electricity plans that you can choose from.

Read Also: What Are the Best Energy Rates in Texas?

What’s the Difference Between Utility Companies and Electricity Provider Companies in Lubbock?

Utility companies handle the delivery of electricity from power plants to your home. These companies, also called TDUs, own and operate the transmission equipment, including power lines and poles. They respond to outages and downed power lines, but they don’t interact directly with customers unless those customers don’t have an REP acting as an intermediary..

TDUs are still heavily regulated in Texas, as are power production companies. In Lubbock, most homes have Lubbock Power & Light as their TDU.

REPs, on the other hand, act as intermediaries between you and your TDU. They buy power at wholesale rates from the TDU and then create and market electricity plans to customers. They collect payments, manage collections and provide customer service to homeowners.

In Lubbock, you can’t choose your TDU, but you can choose your REP to find a rate and plan that suit you. If you don’t choose an REP, you’ll default to getting direct service from your TDU, but this usually comes at a higher price per kWh.

Lubbock Electricity Rate Trends

Editor’s note: Information for the above table comes from the Federal Reserve Economic Data (FRED)

Over the past decade, the average cost of electricity in Lubbock has increased by around 53%. Unfortunately, this matches the general trend we’ve been seeing throughout the United States. There are likely two main causes for this.

First, fossil fuels are becoming more difficult to source and more expensive to acquire, so electricity prices trend upward to keep up with the rising cost of power production. Second, as more people throughout the country convert to renewable energy, fewer people rely on traditional power plants, but there are static operating costs that don’t drop as the customers move to other options. As a result, the cost for the remaining customers goes up.

You’ll notice in the table above that one of the largest upticks in the cost of electricity in Lubbock was from 2021 to 2022, with a nearly 23% spike in prices in just a year. That likely had something to do with the unexpected ice storms that froze natural gas lines and limited production in February 2021. With minimal supply and rising demand, prices shot up. This is one example of how variable-rate plans can be risky.

Choosing an Electricity Plan When Moving to Lubbock

If you live out of state and are moving to or planning on moving to Lubbock, having to choose your REP and an electricity plan can seem a bit intimidating, but there are a few things you can prioritize to make your decision a little easier.

First, I suggest choosing an REP. You can ask your new neighbors or even your real estate agent for recommendations, or you can choose based on customer reviews online. Picking a company that offers good customer service will help ensure that you don’t run into issues with your power company shortly after moving in, which just gives you peace of mind.

Next, I suggest choosing a fixed-rate plan with a contract length of 12 months or fewer. The fixed rate will provide peace of mind and help you budget more accurately in your new home, and the short contract term will give you some freedom to make a switch within a year if you find that the plan or REP you chose doesn’t fit your needs.

When you’re ready to compare electricity plans and choose an REP, you can follow the steps outlined in the following section. I just recommend choosing an REP and signing up for service about a week before you plan to move in. Most REPs will take three to five business days to activate a new account, so planning ahead will help ensure you have power when you complete your move.

Switching Electricity Plans in Lubbock

If you already live in Lubbock and are switching REPs, there are several factors to consider.

First, you don’t have to choose a short contract term, as you’ve likely become familiar with your consumption habits and your REP. Feel free to shop around for better rates, and consider TOU plans that will save you money based on when the bulk of your electricity usage occurs.

Second, make sure you check to see if you’re responsible for an early cancellation fee with your old provider if you’re backing out of your contract early. These fees can be as high as $395, which can set you back quite a bit. If you do have a high fee, consider looking for a new REP that offers to pay your cancellation fee to get your business.

Lastly, you don’t have to worry about signing up in advance of when you want to switch providers, as you would if you were just moving to Lubbock. Since you already have electrical service, your REP will be able to switch you over to their plan immediately and remotely.

When you’re ready, you can follow the steps below to compare and choose an electricity plan.

How to Choose Electricity Plans in Lubbock

Switching to a new electricity plan in Lubbock is simple and should only take you a few minutes. You can use the detailed guide below to help find and choose the best plan for your specific needs.

Just follow the steps below to find the best provider and electricity rate for you:

1. Scroll to the top of this page and enter your zip code.
2. Choose whether you’re switching providers or if you just moved to Plano and need new service. If you’re getting new service, then you don’t need to worry about paying a cancellation fee for your current provider. If you’re currently enrolled in a contract with a different provider, you should contact them or check your contract for information on cancellation fees.
   Some providers don’t charge an early cancellation fee, and others charge $200 or more. In the next step, if you choose to have a live advisor help you, they can do the necessary research for you and potentially even help you reduce the cancellation fee.
3. You have three options to choose from. Advisor Plus+ is a paid service, but a live representative will help you choose the best plan for your needs. This is beneficial, as the cheapest plan isn’t always the best. The advisor will consider fixed and variable-rate plans, go over when you tend to use electricity to get the best time-of-use rates, check your bill to see how much electricity you use per month to secure the best prices and more.
   EnergyBot Advisor is a free service, and a plan is chosen for you based on criteria that you enter. This option delivers a less customized selection, but it should still meet the needs of most customers.
   Standard View is also a free service, but it requires the most work on your part, as you’ll need to look at the plan options and choose one manually. You’ll see the contract term, rate, discounts, renewable energy percentage and more for each plan available in your area.
4. If you chose one of the first two options in the previous step, you’ll get on-screen prompts to help you make the switch from your current provider to the new one selected for you. If you chose the Standard View prompt, you’ll get a list of providers with plan rates and terms, and you can simply click on Select Plan to move forward.
5. Finally, you’ll be prompted with a button that will take you to the provider’s site. You’ll also be told what plan to look for once you’re there to sign up and lock in your new rate.